Santander completes takeover of TSB – what it means for you

Santander has completed its takeover of TSB, bringing millions more customers into one of the UK’s biggest banking groups.

The banking giant has now taken on all of TSB’s five million customers, including current accounts, loans, savings and mortgages.

If you bank with TSB, there are no immediate changes – but the deal could affect how you bank in the years ahead.

Here Which? dives into what we know about the deal, and explains what it means for TSB customers. 

Santander completes takeover of TSB

Santander UK completed the takeover bid of smaller rival TSB on 30 April 2026. 

The takeover, which received regulatory approval from the Prudential Regulation Authority and the European Central Bank, represents the single largest investment in the UK banking sector for over 15 years.

Santander is now the third largest UK bank in terms of personal current account deposits, behind Lloyds and NatWest. Combined, the two banks now serve nearly 28 million retail and business customers nationwide. It also boosted its scale in Scotland and northern England, where it previously had a limited presence. 

Santander UK said the deal would allow it to better support these customers with increased investment in innovative products, its digital offering and new branch formats across the UK.

In a statement, Santander said TSB was a ‘strong consumer banking brand’ and added it expects no immediate changes for customers. Santander said TSB will continue to operate as a separate bank under its own brand for now. 

However, The Financial Times has reported that Santander could eventually phase out the TSB brand after more than 200 years, running the combined business under its own name once the banks are fully integrated. 

• Find out more: best banks and bank accounts in UK 2026

What the takeover means for you

Santander and TSB have confirmed that there are no immediate changes, so you can continue to use your accounts, cards and banking products as normal.

There has also been no change to how your savings are protected. The Financial Services Compensation Scheme (FSCS) covers up to £120,000 per person, per authorised bank. 

While nothing changes straight away, updates are likely over time as the two banks begin to combine their operations. 

Santander has previously bought UK banking brands such as Abbey, Alliance & Leicester and Bradford & Bingley, integrating them into its business.

If similar changes happen with TSB, you should be told in advance. This could include updates to account terms, interest rates, fees, digital banking services or customer support. In some cases, you may need to update your details with third parties if account information changes.

Mortgages and loans are less likely to change immediately, as their terms are usually fixed at the start of the agreement.

Santander has also said the deal is expected to deliver cost savings over time, which could lead to changes to jobs, branches or services.

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What could happen to bank branches?

Retail banks typically cut costs through acquisitions by closing branches, cutting duplicate jobs and consolidating IT systems. TSB has around 174 branches across the UK, while Santander has around 349.

Santander shut 95 branches in 2025, while TSB closed down eight. This year, Santander plans to shut 40 of its branches with four set to go next year, while TSB had no further closures.  

Santander has not confirmed if there will be further bank branch closures as a result of the takeover. Although with the bank absorbing the brand into Santander completely, closures are likely. 

When the acquisition was first announced last year, Santander said it made 'no sense’ to have ‘two branches of the same bank in any one community’. 

Santander said: ‘It is true, however, that the way customers are choosing to bank is changing and all banks are currently undergoing a programme of transformation that reflects this.’

• Find out more: bank branch closures 2026: is your local bank closing?

Should I switch from TSB?

There's no immediate need to close your TSB account or switch to a different provider. Although with changes set to come, you may want to check if you’re getting the best deal on your banking products and services. 

Santander sat in 20th place out of providers in our recent customer satisfaction survey, with a rating of 71% while TSB took 23rd place, receiving 67%. 

However, TSB fared better than Santander in our mortgage satisfaction survey, sitting in 8th place with a score of 74%. While Santander sat in 15th place with a score of 73%. 

There are several bank switching deals floating around, including Santander which is offering new customers a free cash payment of £200. Other offers include: 

• Barclays £200
• First Direct £175

Find out more: best bank account switching deals